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IN THE HIGH COURT OF KERALA AT ERNAKULAM
M.A.ABDUL HAKHIM, J
DIVYARAM MEDICAL AND RESEARCH INSTITUTE PVT. LTD – Appellant
Versus
KERALA FINANCIAL CORPORATION – Respondent
| Table of Content |
|---|
| 1. petitioner seeks refund of foreclosure premium on early loan closure. (Para 1) |
| 2. debate on writ maintainability in contractual disputes with state. (Para 2 , 3 , 4) |
| 3. no interference; pursue civil court for contract claims. (Para 5 , 6) |
JUDGMENT
Dated this the 25th day of February, 2026
1. The Petitioner has filed this Writ Petition seeking direction to the Respondent to refund the foreclosure premium of Rs.49,08,564/- (Rs.41,59,800/- + GST) with interest at the rate of 10% from the date of levy till the date of payment.
2. The Petitioner had availed two loans from the Respondent No.1 on 18.03.2022 and 31.10.2022 for the amounts of Rs.24.50 Crores and Rs.2 Crores. The loan was taken over by ICICI Bank on 06.12.2024 before the expiry of the repayment to the Respondent. The Respondent charged 2% of the loan amount as foreclosure premium. According to the Counsel for the Petitioner, the Respondent, being a State, has to act in a fair and transparent manner. There is clear arbitrariness and illegality in charging foreclosure premium at the rate of 2% from the Petitioner. The learned Counsel relied on the decision of the Hon’ble Supreme Court in ABL International Ltd. an
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